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On May 25th, the head company of adult education, Suntech Institution (NYSE:STG), released its Q1 financial report for 2021. In the first quarter of 2021, the net income of Suntech institutions reached a record high of 694 million yuan (US $106 million), an increase of 22.9% over the same period last year, and 145525 new students, an increase of 107.6% over the same period last year.
In response, Liu Tongbo, CEO of Suntech, said: "We are encouraged by the operational and financial results in the first quarter. This is due to our continuous efforts in product diversification, brand awareness and student satisfaction. Spurred by the strong growth of new students, Suntech's cash income increased to 594 million yuan (US $90.6 million), an increase of 14.9 per cent over the same period last year. "
It is worth noting that with the continuous deepening of cost optimization measures, the profit situation of Suntech institutions improved significantly in the first quarter. Gross profit was 588 million yuan ($89.7 million), up 25.6% from a year earlier; net loss narrowed 18.7% year-on-year to 53.3 million yuan ($8.1 million); and net loss rate (net loss as a percentage of net income) was 7.7%, down nearly 4 percentage points from 11.6% in the same period in 2020.
In response, Lu Lu, chief financial officer of Suntech, said: "We are glad to see that our net income in the first quarter once again exceeded our performance target, reaching an all-time high." The continuous diversification of product strategy and the continuous optimization of the student experience make us confident that we will continue to maintain the momentum of growth. At the same time, we also managed to reduce operating costs, of which administrative expenses were reduced by 52.2% compared with the same period last year. In the future, our marketing department will continue to explore the best ways to improve brand awareness, while our sales team will target higher sales conversion rates to drive future business growth. "
It is understood that in the case of high flow costs throughout the industry, Suntech institutions take a variety of ways to reduce costs and improve sales conversion rates. The first is to continuously develop new curriculum projects to meet the diversified needs of students and expand their base; the second is to explore the needs of existing students for new courses; and the third is to optimize the quality and service level of existing curriculum projects. After enjoying high-quality curriculum services, students will be introduced to other potential students through word-of-mouth communication.
At the same time, Suntech also uses big data, AI and other technical means to further improve the company's operational efficiency and students' learning experience.
In view of the pain points of adult learning, such as "lack of time, fragmentation, and difficult to persist", Suntech institutions began a comprehensive transformation as early as 2014, taking the lead in establishing a leading online live learning model in China. After that, Suntech institutions seized the opportunity of the rise of mobile, big data and artificial intelligence to effectively improve students' experience and learning efficiency by adopting intelligent, social and fragmented means.
AI teachers in Suntech institutions can not only greatly reduce the cost of manual teachers, but also follow the trajectory of students' learning status at any time, and provide students with intelligent and personalized review programs to improve their learning efficiency.
Suntech institutions have also set up the big data Center, which includes a large number of real questions and self-study exercises over the years, and continues to enrich and expand. By the end of 2020, the number of examination questions in Suntech institutions had increased to 825000, an increase of 18.8% over the same period last year. Students were provided with 490 subjects and more than 100000 courses. A total of 4149 new products were put on the shelves in 2020, and 824 new examination plans were added. These data have also become a useful helper to improve the efficiency of teaching and research in Suntech institutions.
At the moment when K12 enterprises are turning to adult education, if they want to occupy the market share of adult training, we must first break through the difficulty of teachers. With 18 years of experience in adult education, Suntech institutions have a better understanding of the needs of adult students and formed a mature and unique teacher training system for this specific user group.
Over the years, Suntech has persisted in investing a lot of energy and cost in recruiting and training excellent teachers. In the recruitment process, Suntech institutions will examine the qualifications, experience, values and innovative ability of candidates, and candidates will undergo multiple tests such as written examinations, interviews, trials, and so on. In the process of training, Suntech institutions will gather the resources of the whole group to support and encourage teachers to carry out teaching improvement, teaching research and innovation at any time, and at the same time continuously improve the overall quality of teachers through all kinds of internal sharing, training, competitions, etc., from cognitive users, teaching plan writing, to explaining important and difficult points, connecting knowledge points, to invigorating the atmosphere, arousing the enthusiasm of students, and so on.